Saturday, September 7, 2013

What is the Section 184 Loan Guarantee Program?

The Section 184 Indian Home Loan Guarantee Program is a home mortgage
specifically designed for American Indian and Alaska Native families,
Alaska Villages, Tribes, or Tribally Designated Housing Entities.
Section 184 loans can be used, both on and off native lands, for new
construction, rehabilitation, purchase of an existing home, or
refinance.
Because of the unique status of Indian lands being held in Trust,
Native American homeownership has historically been an underserved
market. Working with an expanding network of private sector and tribal
partners, the Section 184 Program endeavors to increase access to
capital for Native Americans and provide private funding opportunities
for tribal housing agencies with the Section 184 Program.
To help increase Native access to financing, the Office of Loan
Guarantee within HUD’s Office of Native American Programs, guarantees
the Section 184 home mortgage loans made to Native Borrowers. By
guaranteeing these loans 100%, we encourage Lenders to serve the Native
Communities. This increases the marketability and value of the Native
assets and strengthens the financial standing of Native Communities.
Section 184 is synonymous with home ownership in Indian Country. As
of 2010, the Section 184 program has guaranteed over 12,000 loans
(almost $2 billion dollars in guaranteed funds) to individuals, Tribes,
and TDHEs.

Home loans are harder to get than they've been in years. Stricter new rules starting next year could add to the stress. Mortgage rates are rising, and while there have been some signs of a lending pickup in the strengthening housing market, banks are still making one-third as many loans as they did before the housing crash.

So how do you get a mortgage to buy or refinance your home? And should you rush to get a loan approved now before it gets harder?